Organizational Analysis & Design Plan: Project Description and Scoring Guide QSO 620: Six Sigma Project Plan Guidelines and Grading Guide Overview The final project for this course is the creation of...

Six Sigma Project
Running Header: Six Sigma Project
Title: Six Sigma Project
Presented By:
Presented To:
Date: 05/05/2018
Abstract
The cu
ent report is the summary of the Six Sigma implementation plan for a manufacturing industry located in United States of America. The key considerations prompted to consider six sigma for this project include the need for management of excess inventory in the organization. As of now the cu
ent manufacturing organization has moved to ERP to optimize its operational performance, which includes management of inventory and other related aspects. However still the performance of ERP is not upto the level and hence the organization is proposed to take up the project of Six sigma to reduce the inventory in the organization and to consider enhancing the efficiency the system operations. ERP is infact a versatile and efficient tool in managing the system operations including the inventory on hand and inventory in process. However if the ERP tool is not efficient enough to manage the system operations it will result in pile of excess stock and this is what happened in this organization. The following part of the discussion is focussed on to provide with the a plan to optimize the inventory in the organization as well to set right the ERP to minimize the production costs as well to enhance the organizational effectiveness in operations. Also presented in the report is the discussion on all the key elements of the six sigma strategy like measuring, analyzing and reflection phases.
Table of Contents
2Abstract
3Table of Contents
4Company Background:
4History of the company:
4Development of the company:
4Growth of the company:
6Eight Project components
6Problem statement:
9Project Scope statement and SIPOC:
9Specific Details of the Project Scope:
10Limitations of the Cu
ent project Scope:
11SIPOC or COPIS Table formulation: (Inventory formation)
13Define Phase:
13Repeatability and Reproducibility:
14The measure phase:
15Measures
15Considering the case of million opportunities,
15The Analyze phase:
16Work in flow process causes:
16Store room excess stock pile up causes:
16Final product stock levels
17The control chart:
17Further improve and control phases:
17Justification and Control:
18References:
19APPENDIX
Company Background:
History of the company:
The company is a global manufacturing company and do have manufacturing sites across the world. As of now it has 5 manufacturing centres across the country, including a manufacturing centre in United States of America. The company is quite active and making very quality and affordable items in the electrical and mechanical equipment requirements for Aviation industry. All types of aviation equipment that include trainer flights, AirBus, Jet flights, Jumbo jets and even certain components of Space crafts are being manufactured in these manufacturing resources of the company.
Development of the company:
Company is established in 1980 as technological company involved into manufacturing of goods and components as per the requirements of the global aviation company. However still till the recent years there is considerable progress in the company due to its strategic alliances, mergers and acquisitions for organizational development. The company has several milestones in its growth to attain the cu
ent state and condition.
Growth of the company:
In the first few years the company products are only sold to the industries that worked on automation and related production processes. Later on the company improved the standards and the quality of the products to meet the stringent product demands of the aviation industry and in the due course of time the company reached to the cu
ent situation of multi product generation and capabilities to meet the diverse demands of the aviation industry. The recent acquisition of the company by GE aviation is a landmark in its growth.
Eight Project components
Problem statement:
The cu
ent problem being tackled by six sigma project execution is the reduction of inventory in the organization. The organization as informed before is quite good in making the electro mechanical engineering components as needed for the Aircraft manufacturing requirements. Since the company is quite proactive in developing the technologies to meet the world class production standards, it has developed the systems that are highly automated and required very less human interaction for dealing with the supported activities. There is a warehouse in the organization internal process flow line and from there the raw material stock will be supplied to all the production units of the organization. There are few production process lines each having with specific production capacity values.
Each of these production lines are linked with the raw material supply from the warehouses and this in turn will supply the production demands as and when needed. Apart from main stream material intake from the ware house, organization main stream production processes will also take in certain ingredients and components from the external market as well. Time to time the production process will take in material from the supply lines in accordance with the actual production demands of the process. However still there is limited temporary storage means for the inventory in the production lines. Some of the material in these lines is half in process inventory and some of the material in the process flow line will be completely raw. Partially completed components and components requiring further assembly also will make up the inventory in these flow lines.
Apart from these production lines there is also engineering development flow line, where in the raw material will be consumed in accordance with the requirements of making up the new products for the end requirements. The stock here will be in accordance with the actual demands of the process lines, from time to time the process demands in these lines will be changing and there complete synchronization of the supply resources to the demands on these flow lines in the organization.
Earlier there is a ticket rising system, where in the operators of the flow lines will rise the tickets for daily, weekly and monthly requirements in accordance with the production targets and they will be delivered accordingly. However in the last few years, the introduction of ERP in manufacturing unit has completely changed the way the material moves in. There is complete automation of the process. In accordance with the scheduled project plans, material will be delivered to the production flow lines from time to time and this will be employed for the sake of production.
However the key issues here are due to non compliance of the schedules due to variety of reasons, there can be reasons of external causes, material might have not received by the production lines in time to meet the production requirements and the remaining material will get piled up in the stock flow lines. With time and with subsequent new project operational schedules, the stock piled up will not move and this results in a serious concern. Other profile of the problem is the situation that when there is no proper clearing off the process inflow inventory, it causes chain reactions in the subsequent operational flow lines, the following chains of production flow lines will not be met with the material from the previous process flow lines and this in turn will result in stock pile up there also.
The main presence of this problem is in the main stream production flow line as well as in the engineering flow line. Engineering flow line, excess stock pile up is due to altogether different reason. Engineering flow line is mostly used for innovation and design works. As such there is no fixed schedule and production target for these activities. Also there is quite common for the projects working on this flow lines switch from one product or component to the other without completing the running product. Significance and urgency of completing the project will be the main factor in such instances. Whatever may be the reason, depending on the size and volume of the project going on this flow line, there will be excess stock pile up on this flow line.
The key observations of the problem are as follows,
· Excess material (process inventory, semi finished, finished and raw material) pile up in the flow lines of production processes.
· Excess material piles up in the flow lines of the engineering process flow lines.
· No control on the engineering flow line material flow, highly dynamic and varies as per the demands from time to time.
· ERP is not able consider the actual practical implications at the field level – mostly concerned with the higher end production schedules and processes.
· Total excess inventory in the production...